Australian shares are set to rise once again after Wall Street’s industrial index hit a record high overnight on bets of a quick economic rebound and on the back of the effectiveness of the vaccine we have seen many stocks rising over 30% over the last two weeks. As markets rally towards all times high, it also increases the risk of us been buying at the top and having to take few months of downturn with money stuck into positions. Part of our BGS 20 Strategy is looking for stocks in sectors that have been underperforming and represents great value for our investment.
Bull market is eminent and we cannot see any sign of a correction yet, so we stay with the flow until the first signs come up.
Here is 5 stocks that we believe has a great upside and still good to enter despite a 30% or more run already. We are also attaching the link with our last entries / analysis in each of them.
Energy sector stocks
As oil and gas prices continues to move up oil stocks that have underperformed the market during Covid-19, should do well over the incoming months.
Asx: WPL | Woodside Petroleum, with our 22% target risen from $24 to $28.
Asx: OSH | Oil Search| with our target risen from $ 4.5 to $5.
Asx: STO – Santos does also still represents a great opportunity and exposure to oil and gas, despite we are not trading at this stage, however we believe the stock price can reach $7.5.
Consumer Defensive stocks have underperformed the broader market, providing investors with a total return. As investors have fears that more trade bans to come from China most of the stocks in this sector have performed poorly.
We believe that with The Regional Comprehensive Economic Partnership (RCEP), that includes 10 Southeast Asian countries, as well as South Korea, China, Japan, Australia and New Zealand should give some momentum in the sector, which is one of the last sectors of the market to move.
ASX: TWE – Treasury Wines with target $12.4
Asx: BUB with target at 95c-99c